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SLS: SBE Gets The Cash

By Chuckmonster on Wednesday, 13th February 2013 10:46am
  » filed under Las Vegas  comments: 12

   

Sahara

And, like clockwork, sbe has unfurled their PR cannons to blast the news that they have secured the last $115 million in funds via the EB-5 program.

With much relish, Sam Nazarian stated that they got more than they wanted and are using the extras to pay off debt. Work on the renovation of the shuttered Sahara will begin.... tomorrow. Yes, tomorrow.

We'd like to congratulate VT reader SamNazarian on getting the financing for his renovated hotel. We wish you the best of luck with your project. You're gonna need it.



Tagged: sbe   sls   sam nazarian   





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Comments & Discussion:

Not feeling super bullish on a project that had to be financed using EB-5. My guess is that this is the only solution they could find, and that's why it took so long. On the plus side for SBE, it looks like the "investors" they raised money from aren't looking for a return as much as they are a green card.

I'm still skeptical of this and until this place actually opens, I will remain so. If Sammy Boy couldn't make the Sahara work, how does he expect the SLS to do so? Last I heard, he still lacks the most important thing needed to run a casino, a gaming license. Considering he had a few years to get it before he shuttered the Sahara, it seems odd that he still hasn't gotten it (No word if he's even started the application process at any point since acquiring the property.).

I'm skeptical if they can pull this off, especially relying on the dated bones of the Sahara. Center/South strip Is seeing all kinds of new projects in their same demographic (Delano, Cirque/Club concept at Mandalay, Hakkasan, Nobu, Cosmo still has buzz, Linq, etc). That part of the strip is yet to recover from the bubble bursting, and I doubt they are going to make anything too incredible without starting from scratch and investing even more dough. Modernist decor and a trendy pool and bar scene alone might work in LA and Miami, but to really make it a destination in Vegas and attract the club scene they are going to have to really get creative and think big. That is, I'm assuming they are chasing the demographic of other SLS properties.

Not only does he lack a gaming license, He can't GET one either. Seems as if Sammy has too many dirty friends and NGC is in no hurry to compromise over his history with them. On another note, I found it humorous that Sen Reid was quick to point out the 2000 or so jobs the project will create. I guess he is hoping we have all forgotten about the 1800 or so jobs that were LOST by shuttering the Sahara? Where's the big job creation?

If he cannot get a gaming license then SLS becomes the new Trump. If i can't gamble there then why would I want to go down to the ass end of the Strip? The food options? Entertainment? This has the feel of an epic fail.

It pays his $$$ salary and bonus for the next few years. Thank you, investors!!!

Behind every bullshit development scheme are people drawing fat-ass salaries and bonuses right up to minute the bankruptcy court hammer comes down. The whole point first and foremost is stretching out their income streams with other people's money for as long as possible. SLS and Skyvue look like two perfect examples.

If there's good blackjack, I'll check it out.

I don't think the hotel will be a problem. SLS Beverly Hills is a Starwood hotel so that means SBE should easily be able to fill the rooms. SBE's brands for restaurants etc. are pretty solid at least in the LA market, but again the saturation possibility does exist.

Still, as long as the blackjack is good, I'll give them an afternoon or so.

Last time Sammy Boy Entertainment had the place working they had to hire Navengante (sp?) to operate the gaming for them. (I wonder how many companies in Nevada have the same "Have gaming license, will travel" business model?) I have always thought that leads to bad gaming odds, since it would seem to me that the casino owner wants a big cut of the action and the gaming company wants a big cut of the action. And both of them think they are the most important part of the equation. This usually means the gambler gets the short of the stick...in the rump, IMO.

This whole scheme is perfectly set up to be either:
A. A huge success.
or
A colossal house of cards that will collapse like an imploded casino in an epic spectacle. While leaving behind a field of debris like none ever seen since the days of Lefty Rosenthal and Tony Spalatrone.

Is it bad if I hope for a rebuild of the property in any manner that SLS wants with a casino and ultimately it winds up falling in the hands of someone else, when it shows it won't recoup investment, based on the numbers most of seem to think that it will generate?

PR Cannons sound awsome, are they avalible on eBay?

I'm leaning towards this being a colossal house of cards and the EB-5 program will be where the whole thing crumbles.

"Relying on the dated bones of the Sahara" is true.
How they can make anything out of that existing property is beyond me.I'd rather stay in the Harmon.



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